Health Benefits Expense Account (HBEA)
The Health Benefit Expense Account (HBEA) is a program that allows you to set aside money, before taxes, from your paycheck to pay for health-related expenses not covered by insurance. The great advantage is that you pay no federal taxes on your contributions.
Example
If you put in $1,000 and are in a 20 percent federal tax bracket, you save $200 ($1,000 x 20% = $200).
If you or your spouse and/or eligible dependents go to the doctor or dentist, take medication or wear glasses, the Health Benefit Expense Account may save you money whether you have insurance or not.
Contributions to the HBEA are subject to New Jersey State Income Tax.
How the Accounts Work
Setting up the Account Annually
Each calendar year, you may choose to contribute between $100 and $5,000 into the account. Elections do not automatically carry over each year. You must make a new election through e-Benefits each year to participate in the Health Benefit Expense Account, even if you are participating in the current year.
Reimbursement
When you have an eligible expense, you will have the option of:
- using the PayFlex debit card
- filing the claim online on the PayFlex website; direct deposit of the reimbursement is availble to your personal checking or savings account
- scanning, faxing or mailing your receipt with the medical care reimbursement claim form
You can arrange for direct deposit from your expense account to your personal check or savings account.
You have until March 31 of the year following the calendar year to submit claims for eligible expenses you incurred during the previous calendar year; otherwise any money left in your account is forfeited.
Estimating Your HBEA Expenses
Contributions to your health benefit expense account depend on your household needs.
- Think about how many copayments you will have for physician visits or prescriptions.
- Will you pay a deductible?
- Perhaps you expect a large dental, orthodontic, e.g., braces, or vision expense, e.g., LASIK surgery.
Estimate your expenses carefully because the IRS does not allow you to roll over unused funds at the end of the year, so any money left in the account will be forfeited.
Expense Account Worksheet
Use the worksheet below to calculate your health care (medical, dental, vision) expenses for the calendar plan year, January 1 - December 31.
You can calculate your savings on the website of our third party administrator, PayFlex.
Remember:
- Do not include itemized medical deductions you plan to claim on your annual tax return.
- Include the health expenses of your spouse and eligible dependents.
Everyday Health Expenses (Not Covered by Insurance) |
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Dental (non-cosmetic)
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___________
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Vision (prescription glasses, contact lenses, exams, LASIK, supplies)
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___________
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Prescription drugs
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___________
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Over-the-counter medication is no longer elibile for reimbursement through HBEA unless you have a prescription from a doctor. This rule does not apply to items for medical care that are not medicines or drugs. For example, equipment such as crutches, supplies such as bandages and diagnostic devices such as blood sugar test kits will still quality for reimbursement in 2011.
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___________
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Expenses Within Your Medical Coverage |
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Deductible (amount you pay before the plan begins to pay)
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___________
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Co-insurance (percentage you pay after deductible is met)
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___________
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Copayments (for doctor’s office visits)
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___________
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Other Expenses |
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Orthodontia (only incurred expenses)
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___________
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LASIK eye surgery
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___________
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Chiropractic care
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___________
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Counseling
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___________
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Other
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___________
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Total estimated out-of-pocket expenses
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___________
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You have until March 31 of the subsequent calendar year to submit claims for health care expenses you have incurred during the previous calendar year. Otherwise, any money left in your account will be forfeited.
You can count on support from knowledgeable and responsive HR staff when you have a benefits question or problem. Just call or e-mail us. We’re here to help!
While the University intends to continue each of the benefit plans, the University reserves the right to terminate or amend any plan, at any time, and for any reason.